Abstract

This study investigates the dynamic relationship among the human capital distribution, income gap and growth momentum by incorporating the distributed lag model into a system of equations and using a panel data set that consists of 30 provinces in China from 1998-2010. The analysis shows that, both instantly and cumulatively, an improvement in the structure of human capital distribution tends to widen the income gap and weaken the growth momentum; narrowing income gap is likely to slightly deteriorate the structure of human capital distribution but strengthen the growth momentum; an enhancement in the growth momentum has a tendency to aggravate the structure of human capital distribution but narrow the income gap. Moreover, combination of the calculation results of the three index, an inverted U-shaped ‘Kuznets curve’ is detected. Finally, there also are some of other influence factors of the three.

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